Samantha White – Warwick University – MBA Programme Contents: Item Page Introduction to the firm and its market 3 Vulnerability of the firm 6 Market Exposure - GDP Development and Income Elasticity 6 - Customer structure and degree of dependence 7 - Competition and price elasticity 8 Macro Economic Exposure - Material Price Fluctuation - Exchange rate - Government Intervention 8 Mirco economic decisions – Protection 8 - Brand development and Price positioning 10 - Economies
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MC(Q) AC D Q Q* MR c) What is cross-price elasticity? (2 marks) d) For each of the following pairs of goods state whether the cross-price elasticity is likely to be greater‚ smaller or equal to zero. (8 marks) i) Petrol‚ car ii) Tea‚ coffee iii) Nike trainers‚ generic brand trainers. tie‚ business suit. iv) e) In the discussion of elasticity and raising and lowering prices‚ economists suggest that if you have an elastic demand you should hesitate to raise your price‚ and that lowering
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of the price changing although the demand decreases. The difference between elastic and inelastic are determined by the demand of the product; as for elastic the consumer will always have a demand for the product such as water‚ food‚ and gas‚ and for inelastic the consumer will change the demand based on price of the product. Producers are interested in elasticity‚ because this enables the producers to wager the prices of the product‚ based off of consumer demand. Most producers want to obtain the
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division of GM) was permanently closed in 2009. What went wrong with Saturn? 13. An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income‚ ____ will increase by ____. 14. An increase in each of the following factors would normally provide a subsequent increase in quantity demanded‚ except 15. Which of the following would tend to make demand INELASTIC 16. When demand elasticity is ____ in absolute value (or ____)‚ an increase in price will result in a(n) ____ in total
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Food‚ Good Life Nestle • Nestlé was founded in 1867 by Henri Nestlé in Switzerland • Merged with the Anglo-Swiss Condensed Milk Company in 1905 • Today it is the world’s largest and most diversified food Company‚ and is about twice the size of its nearest competitor in the food and beverages sector. • Nestlé employ around 250‚000 people from more than 70 countries and have factories or operations in almost every country in the world Nestlé Principle • Nestlé is based on the principle
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Tobacco Elasticities in India The taxes imposed varies depending upon the type of product. In the market there are different kinds of cigarettes which are of different lengths and different quality. According to the table 3.5 ITC deals with 5 different kinds of cigarettes which have different kind of taxations and the fluctuations in price also varies according to market powers. As the table 3.1 shows the increase in the excise duty which might surely affect the price of the product. If
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of the events listed here‚ identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. An example of a supply & demand graph (a)People decide to have more children. This indicates there is an increase in the number of buyers‚ therefore increase in its demand. (b)A strike by steelworkers raises steel
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using a product used in many retail industries‚ a shopper loyalty card; this is a concept that has been in the industry for decades however it is new to this organization. This proposal will present the market structure for this program‚ price elasticity demand for the product‚ profit-maximizing quantity‚ price and non-price strategies‚ and production costs. Define the current global economic conditions and their effect on the local macroeconomic indicators. Define the local economies current stage
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typically their sales attempts are met with the reaction that the systems are very costly. GGC has employed you to propose a pricing method for both the western and eastern suburb markets for this coming season. You have approximated two distinct demand functions‚ as follows: Qw=1‚035.548 - 6.07164Pgw + 2.83Pbw + 2‚100Ag - 1‚500Ab + 0.2348Yw for the western market and Qe=49‚714.29 - 30.7692Pge + 6.984Pbe + 1‚180Ag - 950Ab + 0.0825Ye For the eastern market‚ where Q
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corporate bonds? 13. An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income‚ ____ will increase by ____. 14. An increase in each of the following factors would normally provide a subsequent increase in quantity demanded‚ except: 15. Which of the following would tend to make demand INELASTIC? 16. If demand were inelastic‚ then we should immediately: 17. Marginal revenue (MR) is ____ when total revenue is maximized. 18. When demand elasticity is ____ in absolute value (or
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